Seventy-eight spaza shop owners in Ndwedwe Local Municipality, KwaZulu-Natal, are transitioning into the digital economy after receiving Point of Sale (POS) devices, grant funding and business training through the Small Enterprise Development Finance Agency (SEDFA).
The intervention forms part of the R500 million Spaza Shop Support Fund launched in early 2025 to strengthen the competitiveness and sustainability of South African-owned township retailers.
Implemented in partnership with technology provider Shop2Shop, the initiative equips qualifying businesses with digital payment tools while also offering compliance and financial management training.
From informal to formalised operations
Siziwe Zulu, the Spaza Shop Project Manager at the National Empowerment Fund (NEF), said the initiative aims to help local shop owners move beyond survivalist operations.
“We want spaza shop owners to formalise their businesses,” Zulu said.
The introduction of POS devices allows shop owners to accept card payments, offer services such as cash withdrawals, and automatically record sales, creating a digital transaction history.
“We want to give spaza shop owners a world that they aren’t used to ,a world where they can qualify for bulk purchasing. As the Department, we want to ensure that we capacitate South Africa’s own spaza shops,” she added.
This marks a significant operational shift for many township and rural retailers that have traditionally relied on cash transactions and manual record-keeping.
According to SEDFA, the agency has committed R150 million toward the fund, enabling approved beneficiaries to access grant funding of up to R40 000 per shop alongside business development support.
Beneficiaries welcome the support
Philile Ngcobo, a beneficiary in Ndwedwe, recently received R40 000 worth of stock and a POS machine to strengthen her business.
Ngcobo said she has struggled for years to compete with nearby foreign-owned shops that offer additional services such as cash-back services to attract customers.
“For a very long time I have been struggling. Now that I have the machine, I will be able to offer the same services and attract more customers,” Ngcobo said.
She added that the support is expected to improve her daily operations and increase sales.
Meanwhile, Jabu Majola, a beneficiary from KwaMashu, said the POS machine has already improved customer convenience.
“I am very happy and thankful for the machine. My customers are now able to swipe and get cash back,” she said.
However, she noted that while the stock support has strengthened her business, space remains a challenge.
“There is so much stock now, but the building is small. I hope the Department can also assist us with funding to extend our shop,” Majola added.
Beyond the provision of POS devices, beneficiaries receive guidance on financial management and regulatory compliance aimed at strengthening long-term sustainability.
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Small businesses jovial over spaza shops initiative
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